Deal Terms - The Finer Points of Venture Capital Deal Structures, Valuations, Term Sheets, Stock Options and Getting VC Deals Done

by Alex Wilmerding

Deal Terms is the first ever in-depth look at valuations, preferred stock, stock options and other variables that affect deal structure, written by Alex Wilmerding (a venture capitalist at Boston Capital Ventures and best selling author of Term Sheets & Valuations). Written from a venture capital perspective, however applicable for all types of financings, Deal Terms includes actual term sheets, valuation methodology and analysis, assessment of stock option programs and their impact on valuations and capital structures and other real world documents used by leading venture capitalists and lawyers analyzed from multiple perspectives. A must have book for any executive, entrepreneur, or financial professional, this timeless classic is an unprecedented resource that will help you avoid costly mistakes, understand various structures and terms, and understand wording and language from other deal sheets to help you get deals done. According to Graham Anderson, General Partner at Euclid SR Partners, "Deal Terms provides critical, in-depth, first-hand perspective on the crucial terms and factors which influence financing decisions." Clifford Schorer, Entrepreneur in Residence, Columbia Business School remarks, "Deal Terms is an indispensable reference for entrepreneurs and finance professionals." And Andrew McKee, General Partner at Webster Capital notes, "Deal Terms is a really important resource."

Genres: Business

257 pages, Paperback

First published January 1, 2002

About the author

Alex is Partner in Pantheon’s Asia Investment team and leads Pantheon’s Asia Investor Relations efforts. Prior to joining Pantheon, Alex was a director at Citi Private Bank with a focus working with financial sponsors including private equity and venture funds, before which he spent nine years as a partner at Boston Capital Ventures, where he sourced, structured and managed investments in the areas of business process outsourcing and distribution, as well as information, hospitality and transportation services. Previous roles include Commercial Manager Eastern China for the Fednav Group and management positions for Cathay Pacific Airways and Dragonair in Hong Kong, Shanghai and Jakarta. Alex has a BA from Yale University and MBA from Columbia Business School.

Reviews

[Trevor · Rating 4 out of 5]

Useful but incredibly dry explanation of general deal terms and structures. I tried reading it multiple times but wasn't able to actually get through it until I began raising money myself. Read through it in preparation for a deal of your own and keep it around as a reference guide but light reading it is not.

[Pete · Rating 5 out of 5]

This book is highly recommended. It is an easy read but full of important points on the nuances of deal terms

[Suleiman Arabiat · Rating 5 out of 5]

The bible for any VC professional.